Sure but then it’ll definitely be harder to prove it’s actual copyright infringement, especially when only a very small part of the song may have some snippets of the Beatles. Could it then, perhaps, be considered fair use?
Yes you'd have exactly the same kind of lawsuits and arguments that already exist today around fair use. It doesn't matter if a tool creates the new work or a person creates it (without tools?!!?) because ultimately it is a person who claims the new work as their own and distributes it, and that is the person who will get sued by the record companies if their work is too derivative. Establishing the line for "too derivative" in any particular case is a very lucrative field already I'm sure.
